Thursday, September 15, 2016

Passive Income Definition

Meaning and Definition

Passive Income is income that accrues to a person without carrying on of active vocation or profession or the expenditure of any physical or mental labor or time. Passive income is the antonym to ‘active income’, which requires carrying the person’s active engagement and exertion.

Passive income can accrue to a person from two sources:
  1. Inheritance
  2. Investments

For a majority of us, only sustained, prudent and significant investments can result in the creation of adequate passive income to liberate us from the drudgery of the necessity to work for a living, which is called ‘financial freedom’.


Examples of passive incomes are:
  • Rent
  • Dividend
  • Interest
  • Royalty

Related Links:

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Passive Incomes of Financially Free and Not Free Compare?

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How to Attain Financial Freedom?

How The Passive Incomes of The Financially Free and The Rich Compare?

How Will My Lifestyle Affect My Children?

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